Research 06th December 2016 Offshore ownership hits five year high. Foreign ownership of the New Zealand equity market increased to 36.3% from 32.6% in 2015. This is the highest level since 2011. NZ retail investment experienced the largest drop of the year, falling to 23% from 27%. Portfolio-style investment also fell. However, we observed an increase instrategic stake holdings. The Initial Public Offering (IPO) run-rate remains subdued, with just three IPOs in 2016. That said, some further new listings resulting from separations of existingassets shows corporate activity remains alive and well in New Zealand. New Zealand equity market capitalisation currently sits at 41% of GDP, the highest level since 2000. This is still low by international standards, but represents anincrease from 2015 (37%). New Zealand’s relatively high-yielding equity market has been a key beneficiary of the global ‘hunt for yield’ in recent years, which has driven the level of offshoreownership to its current level. Ironically, however, just as interest in our equity market has hit a multi-year high, it appears this underlying thematic is beginning toshift, with central bank stimulatory policies diminishing and more appealing yield alternatives for international investors emerging. Please click here to view the full survey.